Osborne to admit debt plan in ruins

clock

Chancellor George Osborne is to tell the electorate this week that his debt plans are in ruins, with the deadline for bringing UK debt down pushed back by many years.

Osborne, who has already come under fire for cutting too far and too fast, had staked his reputation on maintaining the UK's AAA credit rating but lost this last month.

Now, the Chancellor is poised to reveal his plans to bring down public debt by 2015-2016 at the latest have had to be pushed back by two years as the embattled UK economy struggles to deal with a range of problems.

Having originally committed to bring the burden of public debt down by 2015-16 at the latest, the Chancellor extended that target by a year in December and is now preparing to concede another delay to 2017-18.

Speaking on the BBC's The Andrew Marr Show yesterday, Osborne warned: "We have to go on in this Budget confronting the very difficult economic problems that Britain has - difficult problems in a difficult world situation."

Now as public sector debt is poised to rise until 2017-18, getting even closer to the levels economists think have serious long-term consequences, the coalition's original plan to have both the deficit and debt under control by the 2015 general election is in pieces.

The main positive for families in the upcoming election is expected to be the £10,000 income tax threshold coming in a year ahead of schedule in 2014.

More on Regulation

CII to reduce headcount by eight to 'deliver better outcomes'

CII to reduce headcount by eight to 'deliver better outcomes'

Forming plans to streamline processes and services

Isabel Baxter
clock 26 March 2024 • 1 min read
BIBA names Julie Comer as head of compliance

BIBA names Julie Comer as head of compliance

Helping members with compliance queries and concerns

Jaskeet Briah
clock 20 March 2024 • 1 min read
FCA unveils measures for more transparent enforcement cases

FCA unveils measures for more transparent enforcement cases

Consultation process initiated

Sahar Nazir
clock 27 February 2024 • 2 min read

Highlights

COVER Survey: Advisers damning of protection insurer service levels

COVER Survey: Advisers damning of protection insurer service levels

"It takes longer than ever to get underwriting terms"

John Brazier
clock 12 October 2023 • 5 min read
Online reviews trump price for young people selecting life and health cover

Online reviews trump price for young people selecting life and health cover

According to latest ReMark report

John Brazier
clock 11 October 2023 • 2 min read
ABI members with staff neurodiversity policy nearly doubles

ABI members with staff neurodiversity policy nearly doubles

Women within executive teams have grown to 32%

Jaskeet Briah
clock 10 October 2023 • 3 min read